Spirit Airlines is trying to put on a brave face, but both its financial filings and internal communications reveal a far bleaker picture than the CEO is publicly admitting.
As Spirit Airlines CEO Downplays Dire Financial Situation, Flight Attendants Face Stark Warning
Yesterday, I shared about a concerning warning from Spirit Airlines in a government filing suggesting it might not last for another year. With the budget carrier hemorrhaging money, it is facing a much more difficult time renewing a contract with its credit card processor, which is fundamental to its business model.
In a memo shared by Kris Van Cleave, CEO Dave Davis suggested to employees that the dire warning was a legal requirement rather than a reality:
Yesterday, we filed our 10-Q, outlining our second quarter 2025 financial results. This filing generated media coverage and, naturally, a lot of questions.
Let me start by providing some context around what’s included in the report. The report uses the phrase “substantial doubt about the Company’s ability to continue as a going concern.” This is a phrase required by our outside auditors to convey that there is risk if we do not make changes. But, we are.
Since my arrival at the airline, the Senior Leadership Team and I have developed a plan that leans into Spirit’s strengths, while moving away from the elements of the business that no longer work. That includes strategically growing our network in stronger markets with more opportunities and making some difficult decisions like re-evaluating unprofitable routes. It also includes improvements to our revenue management system and the way we sell our products. By doing so, the team and I are confident that we can build a Spirit that will continue to provide consumers the unmatched value that they have come to expect for many years to come.
Spirit is a critical part of the U.S. aviation industry. We have saved consumers hundreds of millions of dollars, whether they fly with us or not. We remain hard at work on many initiatives to protect our unique franchise, our valued Team Members, our business partners and our Guests who place their trust in us every day.
There is little doubt in my mind that Davis is the right man for the role. Under his leadership, Spirit is doing all it can to improvise and adapt in light of the environment. By some metrics, it is working. Total revenue per passenger is up 7% over last year and revenue per available seat mile is up 10%, though that has come at the cost of Spirit shrinking its operation. Even so, Spirit lost $245 million last quarter on only $1 billion in revenue…that’s a horrible result in what is traditionally a strong quarter.
So while I appreciate Davis’ words, I’m not sure how effective placing band-aids on gunshot wounds will be…
…and neither are flight attendants.
Spirit Airlines Flight Attendants Warned By Union
A memo to flight attendants warns of grim prospects of survival:
We need to be direct. Spirit is in a fragile financial position, likely more so than at any point in the previous 24 months.
We urge you to take an honest look at your personal situation, examine all your options, and prepare for all possible scenarios. Use this time to assess your financial situation and begin strategizing how best to weather the financial impact that flying cutbacks may have on your household.
It’s excellent advice, as grim as it is. What more can be said? Flight attendants would be foolish not to prepare for the worst, even if a merger or other lifeline can be found.
CONCLUSION
Spirit CEO Dave Davis may be working hard to reassure employees and customers, but the airline’s own financial disclosures paint a far darker reality. Even with smart leadership and targeted adjustments to its network and revenue strategy, the numbers suggest that Spirit is running out of runway.
The harsh truth is that confidence is currency in the airline business. A filing that casts doubt on Spirit’s survival will spook investors, partners, and travelers alike, draining the very advance ticket sales the carrier desperately needs to stay afloat. If the perception takes hold that Spirit Airlines is circling the drain, no amount of optimistic memos will keep it from being pulled under.
I’m sad for the employees, I’m sad for my Spirit airlines FLYY stock, I’m sad for my Spirit points.
Well, maybe the FA’s could go work at Air Canada, I hear they may be looking 🙂
Legally required or not, they are basically telling the employees to find a new job. Which will only make things worse (if possible) in the customer service area for their customers still utilizing them.
This is exactly why restaurants close with no notice to the employees. Once it’s obvious you aren’t going to make it, the employees find new jobs and it’s impossible to keep the business operating. Different industry but same principle.
Look at the flight attendants smiling, being helpful with luggage etc….
Wouldn’t this be true for all their employees, not just the FAs?
I foresee this happening to Southwest, “er” Southworst – following the bankrupters playbook.